Mortgage rates jump by 10% in June 2022
The Bank of England released average mortgage rates by Loan to Value (LTV) today
What they said
Average mortgage rate for 75% LTV 2-year fixed rates mortgages 2.88%
Average mortgage rate for 90% LTV 2-year fixed rates mortgages 3.18%
Average mortgage rate for 95% LTV 2-year fixed rates mortgages 3.50%
Twindig take
As we have commented before with Bank Rate rising it is inevitable that mortgage rates will follow suit. The average mortgage rates for popular mortgage products rose by around 10% in June and mortgage rates are likely to continue rising during the rest of the year.
The average mortgage rate for a 2-year fixed-rate 75% LTV mortgage has more than doubled over the last year from 1.39% in June 2021 to 2.88% in June 2022. However, although the mortgage rates for higher LTV mortgage products are also rising, at the 95% LTV level they are lower than they were one year ago: 3.50% in June 2022, but 3.74% in June 2021.
Our advice remains the same, if you are in a remortgaging window, we suggest that you speak to your mortgage adviser, with rates rising and very likely to rise further now might be a good time to lock in a low-interest rate for your next mortgage.
You can see the impact of changing mortgage rates on your mortgage payments by using our mortgage calculator.